Louisiana 2015 Regular Session

Louisiana House Bill HB509

Introduced
4/3/15  
Introduced
4/3/15  
Refer
4/3/15  
Refer
4/3/15  
Refer
4/13/15  
Refer
4/13/15  
Report Pass
5/5/15  

Caption

Suspends the state sales and use tax exemption for business utilities (EG +$103,000,000 GF RV See Note)

Impact

The proposed changes in HB 509 would significantly impact businesses that rely on these utilities for their operations. By imposing a sales tax where there previously was none, advocates argue this could lead to an increase in state revenue, estimated at a total of $103 million over the suspension period. However, this may also raise the operational costs for businesses, particularly those heavily reliant on such utilities, potentially affecting their profitability and operational decisions.

Summary

House Bill 509 aims to suspend the state sales and use tax exemption for business utilities, specifically targeting the .97% levy on sales of steam, water, electric power, and natural gas. This suspension is set to be in effect for a two-year period, from July 1, 2015, to June 30, 2017. By rendering the existing exemptions inapplicable, inoperable, and of no effect, the bill aims to generate additional state revenue by expanding the base of taxable items in this category.

Sentiment

The sentiment surrounding HB 509 reflects a mix of support and concern among legislators and business communities. Supporters highlight the necessity of the revenue increase, particularly during budget shortfalls, arguing this could help fund essential services. Conversely, opponents express concern that adding taxes to business utilities could harm economic growth and discourage investment in Louisiana, particularly among small businesses struggling to absorb additional costs.

Contention

Notable points of contention include fears from the business sector about the burden of added taxes impacting competitiveness, particularly in relation to neighboring states that may not impose similar taxes. Additionally, the bill has faced scrutiny about its timing and effectiveness in addressing revenue needs without stifling economic development. The debate pits fiscal needs of the state against the operational realities of businesses operating under tight margins.

Companion Bills

No companion bills found.

Previously Filed As

LA HB434

Suspends a certain portion of the sales and use tax exemption for nonresidential utilities (OR +$209,100,000 GF RV See Note)

LA HCR9

Suspends the state sales and use tax exemption for business utilities (EG +$103,000,000 GF RV See Note)

LA HCR51

Suspends the state sales and use tax exemption for business utilities (OR +$428,600,000 GF RV See Note)

LA HB18

Provides for the applicability of certain exclusions and exemptions to the state sales and use tax (Item #7) (OR +$426,500,000 GF RV See Note)

LA HB61

To provide with respect to the applicability of certain exclusions and exemptions from state sales and use taxes (EN +$272,300,000 GF RV See Note)

LA HCR8

Suspends the exemption for business utilities as to the 0.97% state sales and use tax levy (EN +$103,000,000 GF RV See Note)

LA HB64

Provides for the extent of the state sales and use tax exemption for business utilities (Items #9 and 36) (EG +$238,200,000 GF RV See Note)

LA HB43

Exempts certain business utilities from state sales and use taxes (OR -$69,200,000 GF RV See Note)

LA HB603

Exempts certain business utilities from state sales and use taxes (RE -$62,000,000 GF RV See Note)

LA HB17

Provide for the applicability of certain exclusions and exemptions to state sales and use taxes (Item #7) (OR +$84,000,000 GF RV See Note)

Similar Bills

No similar bills found.